Entrepreneurship is great, entrepreneurs make more money and have more fun on their jobs but they must be doing business right. The pitfalls, holdups and uncertainties in business are numerous especially for startups.  Introduce the Investor an investor is one who takes a purely financial commitment towards a project or business with the goal of reaping substantial profits in the future, best examples are the ‘sharks’ on the hit TV show Shark Tank’. Investors are a little different from the classic entrepreneur, they don’t just go with their guts but more so their brains.

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In a nut shell investors operate on the following principles;

  1. They do their homework

Doing your homework entails learning the in-depth details of what you are doing .Savvy investors take time to read charts, delve into research material, and understand growth circles, market patterns and even the macro and micro economic environments.

  1. They take calculated risks – An investor’s business is in risk they are always exposed and anticipate risks, it’s not a matter of if, it’s a matter of when .A savvy investor leaves nothing to chance.
  2. They know what works (Fundamentals)-In business there are many tell-tell signs to show if the venture is going to succeed i.e.is there a demand for the product? Does it satisfy a market niche? Is the management good? Is the venture in a high growth industry does the business generate good cash flows? , these are the definite fundamental issues that one looks at to know if the business runs well, and if it’s a sound investment.
  3. They look at the management –As investors invest in other business they not only look to see if the business is well managed but also understand management science. They only invest in business they know are run very well.
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An entrepreneur doing business with an investor’s mindset is a sure guarantee that you will increase your efficiencies and succeed.


Head Consultant & Business coach

Run & Grow Consult



TheFounder Magazine

Made Of Founders

TheFounder Magazine is an online business magazine that focuses on starting, running and growing a business in Kenya today

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